High inflation is a chronic economic problem in Argentina, and it has recently been exacerbated by the global recovery from the pandemic and the wider geopolitical fallout of Russia’s invasion of Ukraine. Accordingly, the government’s national price control programme Precios Cuidados will continue to play a vital role in ensuring drinking milk products – mainly fresh and shelf stable milk – remain affordable to a large swathe of the population over the forecast period.
Adecoagro is a relative newcomer in drinking milk products, having only entered the category in 2019 after it acquired two factories and the Las Tres Niñas and Angelita brands from struggling dairy producer SanCor Cooperativas Unidas. In 2021, it invested USD5 million in expanding Las Tres Niñas into flavoured milk drinks, where it is now available in 200ml and 1-litre presentations.
Shelf stable milk looks set to continue making retail volume share gains at the expense of fresh milk over the forecast period. The price gap between the two has narrowed significantly in recent years thanks to the launch of new shelf stable milk brands that are cheaper than long-time category leader La Serenísima, including Adecoagro’s Apóstoles and Estancia Los Fatimenses from Babasal.
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Drinking Milk Products
This is the aggregation of flavoured milk drinks, milk and powder milk. Note: Plant-based drinking milk products should be excluded from this category and tracked under plant-based milk. Except for plant-based powder milk that should be tracked within the core dairy category of powder milk.See All of Our Definitions
This report originates from Passport, our Drinking Milk Products research and analysis database.
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